Page 38 - BAA CAFR 2017
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BIRMINGHAM AIRPORT AUTHORITY
                                NOTES TO THE FINANCIAL STATEMENTS



           NOTE 2       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

                        M.     Revenue Classifications
                               Revenue is recognized when earned. The Authority will classify revenues
                               as operating or non-operating based on the following criteria:


                                  Operating revenues are from the revenue sources that constitute the
                                  principal ongoing activity of the operations of the Airport. The major
                                  components of operating revenue consist of landing fees and terminal
                                  building and ground rentals, concession and parking fees, and other
                                  miscellaneous fees and charges. Landing fees and terminal building rates
                                  are charged on the basis of recovery of actual costs for operating and
                                  maintaining the Airport airfield and terminal areas.

                                  Non-operating revenues are from revenue sources related to financing
                                  activities and other activities which do not constitute the principal
                                  ongoing activities of the Authority’s operations. These include PFCs,
                                  interest income, and grant revenue related to specific programs.

                        N.     Expense Classifications
                               The Authority will classify expenses as operating or non-operating based
                               on the following criteria:


                                  Operating expenses relate to the  principal  ongoing  activities of the
                                  operations of the Airport. The major components of operating expenses
                                  consist of personnel costs, contractual services, utilities, maintenance,
                                  materials and supplies, professional services, depreciation and
                                  amortization, and equipment rentals and repairs.

                                  Non-operating expenses relate to financing activities and other activities
                                  which do not constitute the principal ongoing activities of the
                                  Authority’s operations. These include primarily interest expense.

                        O.     Federal Grants
                               When a grant agreement is approved and all eligibility requirements have
                               been met, the expenditures are recorded as a federal grant receivable and as
                               a capital grant contribution.

                        P.     Cash and Cash Equivalents
                               The Authority considers cash-on-hand, bank deposits and highly liquid
                               investments with an original maturity of three months or less to be cash and
                               cash equivalents.

                        Q.     Receivables
                               Accounts Receivables are reported at their gross value when earned and are
                               reduced by the estimated portion that is expected to be uncollectible.  The
                               allowance for uncollectible amounts is based on collection history, and
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